Correlation Between Danske Andelskassers and Spar Nord
Can any of the company-specific risk be diversified away by investing in both Danske Andelskassers and Spar Nord at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Danske Andelskassers and Spar Nord into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danske Andelskassers Bank and Spar Nord Bank, you can compare the effects of market volatilities on Danske Andelskassers and Spar Nord and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Danske Andelskassers with a short position of Spar Nord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Andelskassers and Spar Nord.
Diversification Opportunities for Danske Andelskassers and Spar Nord
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Danske and Spar is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Danske Andelskassers Bank and Spar Nord Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spar Nord Bank and Danske Andelskassers is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Danske Andelskassers Bank are associated (or correlated) with Spar Nord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spar Nord Bank has no effect on the direction of Danske Andelskassers i.e., Danske Andelskassers and Spar Nord go up and down completely randomly.
Pair Corralation between Danske Andelskassers and Spar Nord
Assuming the 90 days trading horizon Danske Andelskassers is expected to generate 1.82 times less return on investment than Spar Nord. But when comparing it to its historical volatility, Danske Andelskassers Bank is 1.54 times less risky than Spar Nord. It trades about 0.05 of its potential returns per unit of risk. Spar Nord Bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,734 in Spar Nord Bank on August 29, 2024 and sell it today you would earn a total of 4,786 from holding Spar Nord Bank or generate 54.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danske Andelskassers Bank vs. Spar Nord Bank
Performance |
| Timeline |
| Danske Andelskassers Bank |
| Spar Nord Bank |
Danske Andelskassers and Spar Nord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Andelskassers and Spar Nord
The main advantage of trading using opposite Danske Andelskassers and Spar Nord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Andelskassers position performs unexpectedly, Spar Nord can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Spar Nord will offset losses from the drop in Spar Nord's long position.| Danske Andelskassers vs. Vestjysk Bank AS | Danske Andelskassers vs. Spar Nord Bank | Danske Andelskassers vs. Skjern Bank AS | Danske Andelskassers vs. RTX AS |
| Spar Nord vs. Dataproces Group AS | Spar Nord vs. cBrain AS | Spar Nord vs. ALK Abell AS | Spar Nord vs. ChemoMetec AS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |